Prices of non-subsidized Liquefied petroleum gas (LPG) cylinders would become cheaper from next month, bringing relief to the common man. Indian Oil Corporation Limited announced on Wednesday that the price of domestic cooking gas would be reduced by ten rupees starting April 1.
From April, a 14.2 kg non-subsidized LPG cylinder would cost about 809 in Delhi and Mumbai. From Thursday, an LPG cylinder will be available for 835.50 in Kolkata. LPG cylinder prices in Chennai will be reduced to 825 rupees next month.
Every month, LPG cylinder rates are revised by fuel retailers. In recent weeks, LPG rates have risen by 125 pence per cylinder. In India, the price of LPG cylinders is mainly determined by two factors: the international benchmark rate for LPG and the exchange rate between the US dollar and the rupee.
Following a record rise in prices, LPG cylinder prices have fallen as global oil prices have declined. The possibility of a quick turnaround in demand was hampered by the second round of COVID-19 incidents, which prompted new lockdowns in parts of Europe.
“Prices of crude oil and petroleum products in the international market softened in the second fortnight of March 2021 due to increasing fears over rising Covid-19 cases in Europe and Asia and concerns about the vaccine’s side effects,” Indian Oil Corporation said in a statement.
“Over the last few days, world oil markets, which act as a benchmark for calculating retail costs, have weakened. Though prices firmed up on Tuesday, the overall trend has been downward, which should be reflected in domestic retail rates as well “PTI quoted a senior official as saying.
In November 2018, the price of LPG reached a new high of $939 per cylinder.
In a given year, each household is entitled to 12 cylinders of 14.2 kg at subsidized rates. If a person requires more than 12 LPG cylinders per year, he or she must pay the market price. Consumers get subsidized LPG cylinders under the PAHAL (Direct Benefit Transfer of LPG) program.
Prices of gasoline and diesel are also expected to decline in the immediate future. “The latest trend shows that prices will not grow in the immediate future. In reality, there’s a chance we’ll see a decline in the near future “According to PTI, an official said.
